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How to consolidate your mutual fund portfolio

Conditions to be met
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Conditions to be met

While making fresh investments in an existing mutual fund, if the existing folio number is not mentioned as a reference, a fresh folio is created for the same holder(s). It is possible to merge all folios into one to get a consolidated view of the investments. Consolidation can be carried out only if the following conditions are met:

Names of holders and holding pattern of investments is identical across all folios.
Mode of holding is same across folios (joint/either or survivor.)
Tax status of all investments is identical (NRE/Resident Indian/Corporate).
Signature, address, PAN and social status of investors is same.

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​Request for consolidation
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​Request for consolidation

Investors who wish to consolidate their mutual fund investments into a single folio need to submit a written application to the AMC/Investor service centre or to his/her investment adviser or agent to carry out consolidation. A standard format for application can also be obtained on the mutual fund website.

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​Information needed
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​Information needed

All folios held in the fund should be mentioned in the application. The target folio into which all other folios need to be consolidated should also be mentioned.

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​Signature
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​Signature

The request needs to be signed by all unit holders, if the units are held jointly. However, in case the mode of holding is anyone or survivor, the application can be signed by any of the holders.

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Processing of request
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Processing of request

The duly filled up form can be submitted to the AMC or investor service centre. On receipt of form, a stamped acknowledgment is issued to the investor for reference. Once all details are verified with AMC records, the request is approved and source folios are merged into the target folio.

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​Points to note
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​Points to note

1. Folio consolidation can be done only at a mutual fund level. Folios held across different mutual fund houses cannot be merged.
2. If the folio being merged is under lien or pledge, prior consent of the financier is required to be enclosed with the application.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

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